1. What is MiCAR?
The Markets in Crypto-Assets Regulation (MiCAR) is a landmark EU regulation designed to create a comprehensive legal framework for crypto-assets that are not covered by existing financial services legislation. Its key objectives include increasing legal certainty, fostering innovation, protecting consumers, and ensuring market integrity across the European Union.
2. What is the "grandfathering regime" and when does it end?
Prior to MiCAR, Crypto Asset Service Providers (CASPs) in the Netherlands were required to register with De Nederlandsche Bank (DNB) under national anti-money laundering (AML) legislation. To facilitate a smooth transition to MiCAR, a so-called grandfathering regime was put in place. This allowed CASPs that were already registered with DNB before December 30, 2024, to continue providing their services in the Netherlands without a MiCAR license for a limited period.
The grandfathering regime in the Netherlands for CASPs registered with DNB ends definitively on June 30, 2025.
3. What happens on July 1, 2025, if Coinmerce does not have a MiCAR license yet?
As of July 1, 2025, any CASP operating in the Netherlands without a MiCAR license (or a passported license from another EU Member State) will be in formal breach of MiCAR. The Dutch Authority for the Financial Markets (AFM) has issued a public notice, confirming they will provide a tailored approach for CASPs that are in the process of acquiring a MiCAR license, but have not yet completed the license application process. For more information, please see FAQ 8. Can we continue using services provided by Coinmerce while the MiCAR license application is pending?
4. Why is the Dutch grandfathering period shorter than in some other EU Member States?
While MiCAR allows for a transitional period of up to 18 months (until July 1, 2026), individual Member States have the discretion to reduce or not apply this period if they deem their national regulatory framework applicable before December 30, 2024, to be less strict than MiCAR. The Netherlands has chosen a shorter, six-month transitional period.
5. Coinmerce has been operating under a DNB registration. Is this sufficient after June 30, 2025?
No. The former DNB registration is not sufficient after June 30, 2025. Coinmerce must therefore obtain a MiCAR license from the AFM. The former DNB registration cannot be converted into a MiCAR license; it requires a new, full application process with the AFM.
6. Where is Coinmerce in the MiCAR licensing process?
The AFM is the competent authority for issuing MiCAR licenses to CASPs in the Netherlands. The application process for Coinmerce involves:
Preparation: Thoroughly understanding MiCAR requirements, assessing how they apply to our specific services, and making necessary operational adjustments.
Documentation: Compiling a comprehensive application package including detailed information on our governance, internal control mechanisms, risk management, capital requirements, client protection measures, and more.
Submission: Submission of a complete application to the AFM.
Assessment: The AFM will review the application for compliance with MiCAR requirements. This also includes a fit and proper assessment of board members and a prudential assessment by DNB for certain requirements.
Coinmerce is currently in the final assessment stage of the MiCAR application process.
7. What are the key elements the AFM assesses during a MiCAR license application?
The application focuses on various areas, including:
Scope of the license application and types of crypto-asset services offered.
Governance arrangements of the applicant and any group affiliates.
Outsourcing and control mechanisms.
Segregation of client crypto-assets and own funds.
Provision of sound and clear information to clients.
Robust risk control and compliance frameworks (including AML/CFT).
Fitness and propriety of management body members.
Prudential requirements
8. Can we continue using services provided by Coinmerce while the MiCAR license application is pending?
Yes, you can continue to use our services after June 30, 2025.
9. Is Coinmerce already compliant with MiCAR?
To be MiCAR compliant, Coinmerce will need to finalise the MiCAR license application process. Although the licensing process has not been formally completed, Coinmerce has made every possible effort to be compliant and undertake all possible steps to avoid detriment to clients, market participants, and the integrity of the market, while also adhering to applicable AML/CFT requirements.